Cedar Falls committee backs mayor—s recommended FY26 levy of $12.20; budget trims, reallocations proposed

The Cedar Falls Committee of the Whole on Monday discussed the mayor—s proposed fiscal year 2026 budget and voted to recommend a levy rate of $12.20 per $1,000 of assessed value for City Council consideration at a special April 7 meeting.

The recommendation, described by the mayor as an attempt to balance core service commitments and community investments while limiting the tax-rate increase, would lower the previously advertised maximum levy. Mayor (unnamed in the transcript) told the committee the changes would bring the city—s residential levy impact closer to inflation, estimating the preferred package would raise the median homeowner—s annual city tax bill by about $73 (from about $1,387 to $1,458) versus roughly $41 under a 3% consumer price index increase.

Committee members said the proposal is intended to hold down rate pressure while funding items the city has already committed to and a small set of capital needs. The mayor presented a package of recommended edits that included removing a $300,000 general-fund capital allocation (leaving $200,000 funded from hotel/motel tax), transferring $1,000,000 from a maturing economic-development tax increment program to capital projects, and using the full Emergency Management Agency (EMA) refund in the current year instead of splitting it.

Key proposed reallocations and budget items

- UNI/Unidome commitment: The mayor recommended reducing the city—s previously discussed $3,000,000 pledge for the UNI Dome project to $2,000,000 and transferring the freed $1,000,000 into the city—s capital projects account. The mayor cautioned that UNI had already planned construction in expectation of some funding but noted there was no signed contract. Council members debated whether to reduce the pledge further; the body settled on the $2,000,000 figure in this recommendation.

- Capital allocations from transferred UNI funds: Under the mayor—s recommended edits, $225,000 would be allocated to the high school pool project and roughly $70,000 to cemetery capital (columbarium expansion), leaving about $705,000 available for other capital needs after those allocations and applying the EMA refund in full.

- EMA refund use: The city received an EMA refund of about $184,000. The mayor proposed using the full refund in the FY26 budget (rather than the previously discussed 50/50 split) to reduce the levy impact now and stabilize rates in future years.

- Core and mandatory costs: The proposed budget includes negotiated salary and benefits increases for union contracts and step increases for staff, higher health insurance costs, debt service on recent general-obligation bond sales, election costs, and remaining strategic-plan and college-vision-plan expenses.

Council debate and context

Council members raised concerns about overall property valuation growth and the relationship between millage rate changes and assessment-driven tax bills. Councilmember Cruz said, "It doesn't look like it's a big number, $30...but I think we need to do more," urging additional reductions in discretionary items. Other councilmembers urged balancing arts and quality-of-life investments with public-safety and infrastructure needs; several members noted the city had previously kept rates low despite high CPI years and said this proposal attempts to "claw back" lost ground while remaining mindful of upcoming state-level changes to property-tax rules.

The mayor noted variability and uncertainty from state decisions on property-tax rules and said the recommended package aims to preserve flexibility for anticipated park-master-plan and strategic-plan needs.

Committee action and next steps

The committee moved and seconded a recommendation that city staff bring forward a final levy rate of $12.20 for City Council approval at the April 7 special meeting; the motion carried (one recorded nay). Staff will prepare the detailed budget book for the April meeting and continue outreach to council members on any final adjustments before the formal City Council vote.

Votes at a glance

- Recommendation to direct staff to proceed with a levy rate of $12.20 for FY26: Motion moved and seconded; carried with one nay (recorded in the committee). The committee directed staff to prepare the full budget for the April 7 special council meeting.

Why this matters

The recommended levy and budget edits reallocate previously planned resources (notably the UNI commitment) toward locally controlled capital projects and one-time reductions to the levy impact. The decision shapes how the city balances ongoing service costs, capital needs and external uncertainties from state tax policy changes, and it will return to the full City Council for final action on April 7.

Ending note

Staff said fundraising milestones and private contributions will remain conditions for expenditures on some projects (notably the Hearst Center financing discussed later). The committee signaled support for the presented FY26 direction and asked staff to return a detailed budget booklet for final council consideration on April 7.